NEW YORK CITY—While reflecting on the net lease sector's past—which is familiar territory to a man who started working in the field in 1988—Gramercy Property Trust CEO Gordon DuGan offered a frank but uncertain assessment of the industry's future late Thursday morning as the RealShare Net Lease conference's keynote speaker.
“I don't know how to think about a world where you can offset the entire cost of buying a building in the same year as the transaction,” he stated ominously. “If a company no longer can depreciate its assets, that can lead to some weird things happening.”
He was referring to the Financial Accounting Standards Board's announcement last month of its new lease accounting standard. The organization now requires companies to report most leases on their balance sheets, putting an end to the off-balance-sheet reporting of assets and liabilities related to the rights and obligations created by operating leases.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
